McCain Adviser: Recession All in Our Minds

According to Phil Gramm, the former senator from Texas who’s now a key economic adviser to Sen. John McCain, America’s economic woes, insofar as they actually exist, are the product of some stinking thinking by “a nation of whiners” and doom-and-gloom headlines from the U.S. media. Gramm’s comments, made during an interview with The Washington Times, drew strong criticism from McCain himself, as well as from Barack Obama’s camp.

But, as a Politico article from earlier this year points out, Gramm might have personal reasons to downplay the current economic downturn.

The Washington Times:

In an interview with the Washington Times, Phil Gramm, a former Texas senator who is now vice chairman of UBS, the giant Swiss bank, said he expects Mr. McCain to inherit a sluggish economy if he wins the presidency, weighed down above all by the conviction of many Americans that economic conditions are the worst in two or three decades and that America is in decline.

“You’ve heard of mental depression; this is a mental recession,” he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. “We may have a recession; we haven’t had one yet.”

“We have sort of become a nation of whiners,” he said. “You just hear this constant whining, complaining about a loss of competitiveness, America in decline” despite a major export boom that is the primary reason that growth continues in the economy, he said.

“We’ve never been more dominant; we’ve never had more natural advantages than we have today,” he said. “We have benefited greatly” from the globalization of the economy in the last 30 years.

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